Australian merino wool prices have officially hit the fabled $20 a kilogram, in what is another record high.
While strong demand from China is largely responsible for driving the market in recent weeks, there has also been an increase in demand for high-quality, superfine wool from international markets, with Australian growers reaping the benefits of a weaker local currency.
In the last month, the price of medium merino has increased by almost $3, with the Chinese market calling for uniform fabric, double-faced fabric, fake fur, as well as traditional woven and knitted garments. There’s also new wool opportunities in the US market, with renewable and biodegradable fibres being coveted for use in athleisure clothing, with its odour-resisting properties and soft feel being a bonus.
The high prices coincide with the conclusion of peak shearing season in Australia, meaning supplies are dwindling and growers will need to push to get as much wool on the market as possible. This is a great opportunity for shearing contractors ready to capitalise before the traditionally quiet time of year sets in.
With the highest wool prices in nearly three decades, many didn’t expect this renaissance in the Australian wool industry. For those that have stuck out this interminable period following the collapse of the wool reserve price scheme in 1991, the rewards are richly deserved.
With Merino producers finally set to enjoy the fruits of their labour and with a bumper wool cheque on the way, wool growers need not wait for their wool clip to come in before investing in infrastructure or additional property.
This article courtesy of Elders. For more articles by this author, click here.